Tim Davie, the outgoing director-general of the BBC, has warned the corporation will be in “profound jeopardy” unless the current licence fee system is overhauled.
The majority of the BBC’s funding comes from the licence fee, which currently stands at a charge of £174.50 per year, per UK household. Over 75s receive it for free. In the 12 months up to March 2025, the licence fee raised a total of £3.8bn, but non-payment has been increasing in recent years.